Firms: Ashurst (Rum Jungle Resources Ltd); Kemp Strang (Pitt Capital Partners Ltd)
Deal: Pitt Capital Partners have fully underwritten a traditional renounceable entitlement offer for resources company Rum Jungle.
Value: $11.565 million
Area: Banking and finance
Key players: Ashurst partner Kylie Lane was assisted by senior associate Andrew Kim and corporate lawyer Amy Grondal in advising Rum Jungle Resources.
Deal significance: Rum Jungle Resources is a minerals explorer company that is moving into fertiliser minerals production. Focused on projects in the Northern Territory and central Australia, it aims to find, develop and operate phosphate and potash fertiliser minerals projects, nearby existing transport infrastructure.
The company believes that establishing a significant NT-based fertiliser minerals business aligns well with Australia’s strategy to grow agricultural output.
The Rum Jungle portfolio includes the global scale Ammaroo Phosphate project, a portfolio of Sulphate of Potash projects and the Dingo Hill Silica project. The Ammaroo Phosphate project was released to the ASX on 24 March 2014 and is undergoing a pre-feasibility study.
Some of the $11.565 million net proceeds from the entitlement offer to Pitt Capital Partners will go towards a bankable feasibility study and obtaining approvals for the Ammaroo project.
Ashurst advised Rum Jungle on its three-for-two traditional renounceable entitlement offer, at an issue price of $0.02 per new share, to raise $11.565 million before costs (entitlement offer).
The entitlement offer is fully underwritten by Pitt Capital. Pitt Capital is a wholly owned subsidiary of Washington H Soul Pattinson and Company Limited (WHSP) – Rum Jungle’s largest shareholder. WHSP has further committed to take up its full entitlement under the entitlement offer.
Ahsurst partner Kylie Lane said the deal was an important equity raising for the company.
"We are pleased to have advised Rum Jungle on this important equity raising, the proceeds of which will be used to (among other things) complete a bankable feasibility study and obtain environmental and other governmental approvals for Rum Jungle's Ammaroo phosphate project," Ms Lane said.
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